T he Local Government Association (LGA) and Public Sector Audit Appointments Limited (PSAA) are working hard to ensure we have a high quality, cost-effective and sustainable audit service for local authorities throughout the country. Strong, independent audit is fundamental to the means by which councils demonstrate accountability for the way in which they manage and spend taxpayers' money. Audit matters. If it is weakened, so is accountability.

PSAA was established by the LGA in 2014. However, since opening its doors for business in April 2015 it has operated with an appropriately high level of independence. By taking action to establish the company the LGA provided a helpful solution to an immediate problem: post-abolition of the Audit Commission who would manage the unexpired term of existing audit contracts? PSAA has performed that role efficiently with seamless continuity of service.